ADNOC entity Fertiglobe Q1-2023 profit drops 54% on ‘industry-wide’ lower selling prices

ADNOC entity Fertiglobe Q1-2023 profit drops 54% on ‘industry-wide’ lower selling prices

Dubai: The ADNOC joint venture entity Fertiglobe is on track to pay out shareholders dividends totalling at least $250 million for H1-23, and which would be payable in October. A final decision on the amount will be announced along with the Q2-23 results in August. Fertiglobe paid $1.45 billion in dividends for 2022, including H1 payout of $750 million in October 2022 and H2's $700 million paid in April last. The ADX-listed fertilizer company, in which OCI Global is the other major shareholder, saw first quarter 2023 revenues at $694 million and adjusted net profit at $135 million, against $1.18 billion and $361 million a year ago. Earnings were impacted by 'industry-wide lower selling prices during the quarter due to continued declines in European gas prices and demand delays in several key regions, primarily due to weather conditions'. There was also the deferral of 100kt in urea shipments to Ethiopia, which brought about an estimated EBITDA impact of $35 million. Fertiglobe's free cash flow totalled $271 million as of end March. According to Ahmed El-Hoshy, CEO, “The nitrogen outlook remains favorable in the medium to longer term. New supply that commisioned in 2022, has been absorbed by the market, and